Members of the National Association of Professional Insurance Agents (PIA) disagree vehemently with many of the conclusions and observations in a study by McKinsey & Co. on the future of independent insurance agents.
PIA agents and officials recently shared their views on the McKinsey report in a series of interviews for forthcoming articles in both industry and association publications. The verdict: The report is a flawed premise wrapped in a faulty analysis. It contends that the marketplace is marching away from independent agents and toward commoditization of more lines, but then notes with frustration that, "Surprisingly [this] has not yet led to a change in the local insurance agent landscape."
But then in a contradictory statement, under a headline, "The End of an Era for the Local Insurance Agent," McKinsey asserts that "the economics of the traditional agent model are beginning to unravel."
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